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NEC ECC: CE Quotation - Level of detail

+1 vote
Just wanting to clarify my understanding of level of detail requirements associated with quotations submitted by the Contractor in response to a CE.

Essentially, for Options A and C, the contract by default allows the Contractor to provide a quotation for a CE in the form of revised lump sum figures for activities defined in the Activity Schedule.  Clause 63.12 provides for this.  There is no requirement for the Contractor to provide a detailed breakdown of the changes to the Prices other than by the listed activities.

Similarly, for Options B and D, the Contractor is required to provide a quotation for a CE in the form of changes to the BoQ - clause 63.13.

If, for an Option A or C contract, the PM wants a more detailed breakdown of the Contractor's development of the revised Prices, he can try to agree this with the Contractor under clause 63.14.  However, if the Contractor refuses to this, the PM is (essentially) stumped.  

The PM's only options at this time are to either accept the quotation on the basis of the (lump) sum prices provided or to invoke clause 62.3 to make their own assessment (on the basis  the PM decides the Contractor has assessed it incorrectly under clause 64.1 bullet point 2).

Is this understanding correct?
asked Jul 20, 2019 in Compensation Events by jmcb (170 points)  
As Glenn has said, the level of detail is essentially determined by the SCC/SSCC.

The requirement for assessments to be in the form of changes to the Activity Schedule (63.12 Options A and C) or Bill of Quantities (63.13 Options B and D) is to facilitate payment under the lump sum forms (see definition of PWDD) and to add to the total of the Prices (Options C and D).

Although the principle is common to Options A and C (and also for B and D), the practical application would differ.  With Options A and B the assessed amount would be broken down into component amounts which can be readily identified for payment assessment purposes, whereas under Options C and D it is most likely that each CE will be added as a single item.

1 Answer

0 votes
Sorry (as this is not the answer you want) but that is not correct.

Activity Schedule rates can be used but only by agreement (i.e. if both Parties agree). The activity schedule rates are not the default position - Defined Cost is the default position in accordance with SCC/SSCC.

In terms of what detail you need to go to - it will be in sufficient detail to prove your quotation is a fair realistic assessment - otherwise they may make their own assessment  (but still in accordance with the rules of the contract).
answered Jul 20, 2019 by Glenn Hide Panel Member (87,180 points)  
Glenn thanks for the answer - just to clarify one point - you mention Activity Schedule “rates” - presumably this is an error as there are no rates in an Activity Schedule - only “prices”? Or have I missed a subtlety?
Correct - yes that is what I meant. By agreement you can use the prices in the activity schedule - otherwise you revert to Defined Cost built up from first principles.